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We talked about it on Nuit France by relaying the words of Jean-Michel Leclerc, negotiations between distributors and manufacturers are in full swing. They must reach their conclusion on March 1. But tensions are high and worry the Lidl brand in particular.
Finally, after the positions taken by Michel-Édouard Leclerc (Leclerc) and Thierry Cotillard (Intermarché), it is Michel Biero, vice-president of Lidl France, who speaks on this complex situation. During his speech on BFMTV on January 16, he gave a firm speech, denouncing the “unacceptable” demands of certain industrialists. Enough to make customers of this brand so popular in France fear the worst.
Lidl considers boycott
Michel Biero points out the disproportionate demands of multinationals, despite favorable contexts on certain fronts. He does not deny the rise in prices of certain raw materials. On the other hand, he would like manufacturers to take into account the decline in energy, transport or oil. In his eyes, this is not the case.
The vice-president of Lidl France therefore calls on manufacturers to come to their senses. It is essential to find a compromise to protect the purchasing power of the French. However, such a compromise is far from certain.
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Lidl: Michel Biero, the big boss of Lidl, also speaks out and speaks out on price increases
So, faced with what he perceives as a lack of transparency, Michel Biero does not rule out boycotting certain national brands if negotiations fail. A categorical decision which would undoubtedly not make customers happy. However, they expect to see the consequences of the drop in inflation in 2025.
Lidl focuses its strategy on private labels
With 90% of its assortment made up of private labels, Lidl is less dependent on major brands than other brands. However, Michel Biero recognizes the importance of national brands in attracting consumers. He knows, in fact, that the French are attached to it.
-However, it distinguishes between reasonable requests from small and medium-sized enterprises (SMEs), who are asking for increases of 2 to 3%, those of large multinationals, who are demanding increases of up to 10%.
To mitigate the impacts of these increases on consumers, Lidl is announcing significant efforts on its own margins. Michel Biero reassures customers, he wants to protect them. So, Lidl intends to cut back on its margins in order to limit increases as much as possible. This is essential to allow the brand to remain competitive.
A strategic issue for the future
Lidl's position remains clear: to offer accessible products while guaranteeing their quality. With a large majority of private label products, the brand can better resist price fluctuations from major brands. However, Michel Biero is aware that the outcome of the negotiations will directly influence the attractiveness of Lidl stores.
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She buys fries at Lidl and makes a horrifying discovery when she opens the packet
For consumers, the stakes are also high. Indeed, these negotiations will determine shelf prices for the months to come. The balance is fragile: preserving purchasing power while supporting the profitability of economic players.
March 1, 2025, the deadline for discussions, will therefore be decisive. Consumers, just like brands, impatiently await the outcome of these negotiations. We know they are tense. But we hope that the two parties will find a compromise which will allow the French not to lose purchasing power.
